Answered

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Christopher wants to have $10,000 accumulated in 3 years to buy a car. If his investments earn 6%, how would he calculate how much
he will need to save each month to meet his goal?

Sagot :

The amount of money she should save each month is  $254.22.

How much should she save each month?

The formula that can be used to determine the amount of money she should save each month is: future value / annuity factor.

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • n = number of years = 3 x 12 = 36
  • r = interest rate = 6%/12 = 0.5%

(1.005^36) - 1 / 0.005 = 39,336105

10,000 /  39,336105 = $254.22

To learn more about annuities, please check: https://brainly.com/question/24108530

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